Overview
Title
Proposed Agency Information Collection Activities; Comment Request
Agencies
ELI5 AI
The Federal Reserve wants to hear what people think about their plan to keep asking certain banks and lenders for financial information when they borrow money. They also want to stop letting some of these lenders skip reporting. They're looking for feedback until the end of May 2025.
Summary AI
The Board of Governors of the Federal Reserve System is seeking public feedback on a proposal to extend and revise an information collection initiative, identified as FR 2046. This initiative tracks certain financial data from organizations that borrow from the Federal Reserve's discount window. The proposed revision would eliminate the reporting exemption for some seasonal credit borrowers. The Board is interested in comments on the necessity, accuracy, and impact of this data collection, and submissions should be made by May 27, 2025.
Abstract
The Board of Governors of the Federal Reserve System (Board) invites comment on a proposal to extend for three years, with revision, the Selected Balance Sheet Items for Discount Window Borrowers (FR 2046; OMB No. 7100-0289).
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Sources
AnalysisAI
The recent notice from the Board of Governors of the Federal Reserve System invites public comment regarding proposed changes to an information collection process known as the Selected Balance Sheet Items for Discount Window Borrowers (FR 2046). This initiative collects data on certain financial aspects from organizations that use the Federal Reserve's discount window borrowing facility. The proposed amendments specifically aim to revise exemptions in reporting requirements.
Overview of the Proposed Amendments
The Board proposes to continue the FR 2046 initiative while making revisions that eliminate the reporting exemption for some seasonal credit borrowers. Currently, these borrowers do not need to report certain financial data, but the revisions would require them to submit this information weekly. The purpose of collecting these data elements is to ensure that credit provided by the Reserve Bank is used in a manner consistent with regulations and to keep informed of the financial status of borrowing institutions.
Key Concerns and Considerations
One significant concern with the proposed revision is the potential increase in administrative burden for affected institutions. While the Board estimates no significant change in the total burden, institutions currently exempt from weekly reporting may find the new requirements challenging. The Board's notice calls for public feedback on whether the data collection is necessary and its impact on those involved.
Broad Public Impact
For the general public, the impact of this move may seem indirect. Nonetheless, the requirement for more detailed and frequent reporting could promote greater oversight and stability in the financial system by ensuring borrowers adhere to required standards. This oversight could help prevent potential issues within these financial institutions from affecting the broader economy.
Impact on Specific Stakeholders
Depository institutions are the primary stakeholders impacted by this proposal. For those institutions currently exempt from reporting, the change implies adjusting their processes to accommodate the new requirements. This could involve additional operational costs or logistical adjustments.
Conversely, the proposal could have positive effects by providing a clearer picture of financial health and practices among borrowing institutions. This transparency may be beneficial for stakeholders who rely on stable and responsible financial systems. Certain institutions may find that the additional data collection streamlines their own internal processes for tracking key financial metrics.
Conclusion
The proposed extension and revision of the FR 2046 collections are part of the Board’s efforts to ensure proper monitoring and compliance among financial institutions that utilize the discount window. As comments from the public and stakeholders are solicited, the discussion surrounding these changes centers on balancing regulatory oversight with the reporting burden on institutions. The final decision will ultimately reflect a compromise between maintaining thorough financial oversight and ensuring minimal disruption to stakeholder activities. The public is encouraged to provide feedback by the deadline to help shape the Board’s forthcoming actions.